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Originally Posted On: https://timebusinessnews.com/how-to-start-a-business-in-california-the-steps-to-take/
Starting a business is an exciting, yet huge undertaking. Not only that, but the steps that it takes to get your business off the ground depends on the state that you live in. For instance, starting a business in California is going to be different from doing it in Texas or Virginia.
So, are you wondering how to start a business in California? If so, check out these helpful steps below:
Know the Type of Business You Want to Start
Before you can take any steps forward, you must know what type of business you want to open. These days, there are various types of businesses, many of which are online. If you don’t create a brick-and-mortar company, the process may be a little more simple.
But even if you do open a traditional business, the industry that you’re operating in and many other factors will determine how you go about getting things done.
Once you have that information, you can move forward.
Set the Foundation
The next step after deciding the type of business that you want to start is to set the foundation. Come up with a strong business plan that includes creating a name and putting together product development.
You should also consider sales and marketing. Who will be your target audience? How will you get your products and services in front of them? These are all intricate parts of starting a business in California.
You’ll also want to make sure that you get your finances in order. Financial planning is a huge component of getting a business off the ground successfully.
You have to be prepared for the highs and lows. Figure out how you will stay afloat if you only break even with your revenue when you first get started.
Register for an LLC
It’s smart to get a California LLC because it separates you from personal liability in case your business gets sued, and it boosts your credibility. If you are a small business, registering for an LLC is an incredible idea.
Not only that, but it’s a lot easier to create and manage, as opposed to starting a corporation. Plus, it’s relatively inexpensive. You can get an LLC in California for approximately $75.
Create a Website
One of the best ways to solidify your business is by creating a website. Doing so helps customers and clients find out more about you and your company. Not only that, but it makes your business appear more credible.
If you’re promoting your company, but customers and clients have no way of contacting your business or inquiring about more information, it doesn’t go over well.
The good news is, setting up a website is fairly inexpensive. Even if you don’t know much about graphic design or you don’t have the money to pay a professional, it’s okay.
Many sites provide standard templates to simplify the process of creating a website.
Get Set up for Taxes
When you start a business in California, you have to adhere to California employment laws if you plan on hiring workers. If that’s the case, it’s important to understand the California minimum wage as well.
Your business will need an Employer Identification Number (EIN), which is also referred to as a tax ID number. This number is used to identify companies under federal tax filings.
Without an EIN, you won’t be able to hire workers or open a business bank account.
Furthermore, if your company plans to sell physical products, you must register for California sales tax as well.
Get Business Insurance
You want to be prepared in case anything goes wrong. When most people are focused on how to start a business in California, they tend to forget about covering themselves and their workers. Some of the best business insurance to get is professional liability insurance, general liability insurance, and worker’s compensation insurance.
Anything can go wrong at any time, so it’s best to have safeguards in place.
Obtain Your Licenses and Permits
Another huge part of starting a business in California is making sure to get licenses and permits. In order for your business to run legally, you must comply with federal, state, and local laws and regulations.
If you’re not sure about all of the paperwork you’ll need to be in compliance with, check out Cal Comply. They offer in-depth knowledge about everything you need to protect your business from wage lawsuits.
Open a Business Bank Account
When you start your business, you’ll want to separate your business assets from your personal assets. If you mix your company and personal accounts together, that means that your personal assets are in jeopardy of being taken if you are ever sued.
Those assets include your house, car, and other valuables. Also, opening a business bank account is best for paying your employees. You always want a separate account to pay your workers out of.
Plus, when it’s time to file your taxes and do accounting, having a separate business bank account makes things a lot easier.
How to Start a Business in California
As you can see, there are a few important steps you must take in order to comply with all of the California business laws. However, if you make sure to incorporate every step, opening your dream business should be a breeze.
Did this information help you learn how to start a business in California? If so, feel free to read more of our website. We publish content related to a variety of helpful topics.